(1) The department collects penalties from uninsured employers in the manner specified by 39-71-504, MCA. The department will assess a penalty on every uninsured employer of which it becomes aware, unless the department determines that the uninsured period is de minimis.
(2) The amount of the penalty assessed is $200.00, or twice the amount of the premium that the uninsured employer should have paid on the past three-year payroll while the employer was uninsured, whichever is greater.
(3) To the extent that the state compensation insurance fund (plan no. 3) has a multiple pricing of premium structure in effect during any period in which the employer was uninsured, the penalty may be calculated using the highest tier (or pricing level) that could have been charged by the state fund during that period.
(a) For good cause shown, the penalty will be calculated using the rate the state fund would have actually charged the employer during the uninsured period. The employer has the burden of proof of establishing what rate or rates would have been charged by the state fund during the uninsured period.
(b) The employer has the burden of proof of establishing good cause for use of the lower rate as provided in (3)(a).
(i) The employer's alleged financial inability to pay the cost of workers' compensation insurance premium during the uninsured period does not constitute "good cause" for the purposes of this rule.
(ii) The employer's alleged financial inability to pay the penalty imposed by this rule does not constitute "good cause" for the purposes of this rule.
(4) Amounts collected from an employer to reimburse the UEF for benefits paid must be deposited with the UEF. Any amount collected from an employer for future liability on a particular claim becomes an earmarked fund when there is an assignment agreement between the claimant and the UEF.
(5) An account balance is considered past due for the purposes of assessing a late fee if the payment is not received within 30 days after the original billing or notice of requirement of workers’ compensation coverage.